Factors Influencing Customer Choice Decision of Property Management Company in Bangkok Thailand

Abstract

Property Management, when done efficiently, is a solution to cutting costs and expenses associated with buildings and increasing the value of assets. Property Management is the management of assets and real property, either for residential or commercial purposes. It is a crucial task enabling a real estate development project to be met with success. These companies are supposed to oversee and manage shared assets, the common area, the building systems and the environment at a project for the purpose of keeping the project in good condition, attractive and orderly – doing so ultimately adds value in the long run. Property management companies have become an important factor for living at a residential project and for ensuring a project’s sustainability. Therefore choosing the right property management team helps to make your project or your home more liveable, valuable and sustainable. The purpose of this research is to study factors influencing Customer Choice Decision of Property Management Company in Bangkok Thailand. These factors include six independent variables: Brand Trust (BT), Track Record (TR), Property Characteristics (PC), Corporate Staff (CS), Management System (MS), and Management Fee (MF)and one dependent variable: Choice Behavior (CB). 400 sample were collected using electronic questionnaire through social media. We used Structural Equation Models (SEM) for data analysis. The result shows that Since the RMSEA, which is an absolute fit index that assesses how far our hypothesized model is from a perfect model, for this model is .043 (.90), the model seems to fit well according to the descriptive measures of fit. More importantly Management Fee (MF) and Property Characteristics (PC) seem to have significant effects on influencing Customer Choice Decision of Property Management Company in Bangkok Thailand due to their p-values are both less than .05. That means other than management fee that seems obvious, Thai consumer also look at whether Property Management Company has relevant experiences in managing similar kind of property before be it large property, hi-end property, or mix-use property complex.